| Tekijä: | Marshall, D. Venkataraman, S. |
| Otsikko: | Bank capital standards for market risk: a welfare analysis |
| Lehti: | European Finance Review
1998 : VOL. 2:2, p. 125-157 |
| Asiasana: | FINANCE BANKS RISK |
| Kieli: | eng |
| Tiivistelmä: | The authors propose a simple model that is suitable for evaluating alternative bank capital regulatory proposals for market risk. This model formalizes the conflict between bank objectives and regulatory goals. Banks' decisions represent a tension between their desire to exploit the deposit-insurance put option and their desire to preserve franchise value. Regulators seek to balance the social value of deposits in mediating transactions against the deadweight costs of failure resolution. |
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